4 unchanged sentences
Consolidated Statements of Operations for the Fiscal Years Ended March 31, 2026, March 31, 2025 and March 31, 2024
−Removed: Consolidated Statements of Comprehensive Income (Loss) for the Fiscal Years Ended March 31, 2025, March 31, 2024 and March 31, 2023
+Added: Consolidated Statements of Comprehensive (Loss) Income for the Fiscal Years Ended March 31, 2026, March 31, 2025 and March 31, 2024
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2026, March 31, 2025 and March 31, 2024
3 unchanged sentences
Note 2–Divestitures
−Removed: Note 3–Earnings (Loss) Per Share
+Added: Note 3–Earnings Per Share
Note 4–Receivables
11 unchanged sentences
Note 17–Cash Flows
−Removed: Note 18–Other (Income) Expense, Net
+Added: Note 18–Other Expense (Income), Net
Note 19–Segment and Geographic Information
+Added: Note 20–Other Liabilities
Note 21–Commitments and Contingencies
58 unchanged sentences
Other assets 2,802 2,967
−Removed: Assets held for sale - non-current — 11
Total Assets $ 12,890 $ 13,205
46 unchanged sentences
Gain on disposition of businesses — ( 7 ) ( 79 )
−Removed: Other (income) expense, net ( 376 ) 218 1,084
+Added: Other expense (income), net 1 ( 376 ) 218
Total costs and expenses 12,326 12,241 13,558
−Removed: Income (loss) before income taxes 630 109 ( 885 )
−Removed: Income tax expense (benefit) 234 23 ( 319 )
−Removed: Net income (loss) 396 86 ( 566 )
+Added: Income before income taxes 318 630 109
+Added: Income tax expense 290 234 23
+Added: Net income 28 396 86
net income (loss) attributable to non-controlling interest, net of tax 10 7 ( 5 )
−Removed: Net income (loss) attributable to DXC common stockholders $ 389 $ 91 $ ( 568 )
−Removed: Income (loss) per common share:
+Added: Net income attributable to DXC common stockholders $ 18 $ 389 $ 91
+Added: Income per common share:
Basic $ 0.10 $ 2.15 $ 0.46
2 unchanged sentences
DXC TECHNOLOGY COMPANY
−Removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
+Added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Fiscal Years Ended
(in millions) March 31, 2026 March 31, 2025 March 31, 2024
−Removed: Net income (loss) $ 396 $ 86 $ ( 566 )
+Added: Net income $ 28 $ 396 $ 86
Other comprehensive (loss) income, net of taxes:
10 unchanged sentences
Other comprehensive (loss) income, net of taxes ( 129 ) ( 30 ) 35
−Removed: Comprehensive income (loss) 366 121 ( 957 )
+Added: Comprehensive (loss) income ( 101 ) 366 121
comprehensive income (loss) attributable to non-controlling interest 9 7 ( 12 )
−Removed: Comprehensive income (loss) attributable to DXC common stockholders $ 359 $ 133 $ ( 957 )
−Removed: (1) Tax (benefit) expense related to foreign currency translation adjustments was $ 0 , $( 4 ), and $ 2 for the fiscal years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.
+Added: Comprehensive (loss) income attributable to DXC common stockholders $ ( 110 ) $ 359 $ 133
+Added: (1) Tax benefit related to foreign currency translation adjustments was $ 15 , $ 0 , and $ 4 for the fiscal years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively.
(2) Tax (benefit) expense related to cash flow hedge adjustments was $( 4 ), $( 2 ), and $ 3 for the fiscal years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively.
7 unchanged sentences
Cash flows from operating activities:
−Removed: Net income (loss) $ 396 $ 86 $ ( 566 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by operating activities:
+Added: Net income $ 28 $ 396 $ 86
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,182 1,313 1,433
+Added: Goodwill impairment losses 14 — —
Operating right-of-use expense 305 309 353
−Removed: Pension & other post-employment benefits, actuarial & settlement (gains) losses ( 232 ) 445 1,431
+Added: Pension & other post-employment benefits, actuarial & settlement losses (gains) 169 ( 232 ) 445
Share-based compensation 86 79 109
2 unchanged sentences
Provision for losses on accounts receivable 9 12 —
−Removed: Unrealized foreign currency exchange losses (gains) 40 ( 7 ) 8
+Added: Unrealized foreign currency exchange (gains) losses ( 14 ) 40 ( 7 )
Impairment losses and contract write-offs 7 32 18
8 unchanged sentences
Decrease in operating lease liability ( 305 ) ( 309 ) ( 353 )
−Removed: (Decrease) Increase in advance contract payments and deferred revenue ( 78 ) ( 290 ) 11
+Added: Decrease in advance contract payments and deferred revenue ( 95 ) ( 78 ) ( 290 )
Other operating activities, net 6 — ( 8 )
13 unchanged sentences
Payments on finance leases and borrowings for asset financing ( 188 ) ( 298 ) ( 430 )
−Removed: Proceeds from stock options and other common stock transactions — — 2
+Added: Proceeds from bond issuance 742 — —
Taxes paid related to net share settlements of share-based compensation awards ( 14 ) ( 20 ) ( 35 )
3 unchanged sentences
Effect of exchange rate changes on cash and cash equivalents ( 47 ) 3 ( 17 )
−Removed: Net increase (decrease) in cash and cash equivalents including cash classified within current assets held for sale 572 ( 634 ) ( 824 )
−Removed: Cash classified within current assets held for sale — — 10
−Removed: Net increase (decrease) in cash and cash equivalents 572 ( 634 ) ( 814 )
+Added: Net (decrease) increase in cash and cash equivalents ( 59 ) 572 ( 634 )
Cash and cash equivalents at beginning of year 1,796 1,224 1,858
11 unchanged sentences
Balance at March 31, 2023 218,058 $ 2 $ 9,121 $ ( 4,665 ) $ ( 774 ) $ ( 187 ) $ 3,497 $ 323 $ 3,820
−Removed: Net loss ( 568 ) ( 568 ) 2 ( 566 )
−Removed: Other comprehensive loss ( 389 ) ( 389 ) ( 2 ) ( 391 )
+Added: Net income (loss) 91 91 ( 5 ) 86
+Added: Other comprehensive income (loss) 42 42 ( 7 ) 35
Share-based compensation expense 107 107 107
18 unchanged sentences
Acquisition of treasury stock ( 18 ) ( 18 ) ( 18 )
−Removed: Share repurchase program (2)
−Removed: ( 38,445 ) ( 1,626 ) 734 ( 892 ) ( 892 )
Stock option exercises and other common stock transactions 3,425 — —
11 unchanged sentences
Net income 18 18 10 28
−Removed: Other comprehensive income ( 30 ) ( 30 ) ( 30 )
+Added: Other comprehensive loss ( 128 ) ( 128 ) ( 1 ) ( 129 )
Share-based compensation expense 86 86 86
Acquisition of treasury stock ( 12 ) ( 12 ) ( 12 )
+Added: Share repurchase program (2)
+Added: ( 17,714 ) ( 1 ) ( 747 ) 496 ( 252 ) ( 252 )
Stock option exercises and other common stock transactions 2,804 — —
9 unchanged sentences
Note 1 - Summary of Significant Accounting Policies
−Removed: DXC Technology Company ("DXC," the "Company," "we," "us," or "our") is a leading global provider of IT services.
−Removed: We are a trusted partner to many of the world’s most innovative organizations, building solutions that move industries and companies forward.
−Removed: Our engineering, consulting, and technology experts help clients simplify, optimize, and modernize their systems and processes, manage their most critical workloads, integrate AI-powered intelligence into their operations, and put security and trust at the forefront.
−Removed: Through innovative solutions, we help clients to achieve competitive advantages in the marketplace.
−Removed: We serve a global client base, including many Fortune 500 companies, through our more than 120,000 people in over 60 countries.
−Removed: We operate through two segments - Global Business Services ("GBS") and Global Infrastructure Services ("GIS") - delivering solutions that modernize operations and drive innovation across our customers' entire IT estate.
+Added: DXC Technology Company ("DXC," the "Company," "we," "us," or "our") is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed.
+Added: With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world’s most complex technology estates.
+Added: We serve a global client base, including many Fortune 500 companies, through our nearly 115,000 people in 60 countries.
+Added: Segment Structure
+Added: During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services.
+Added: The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources:
+Added: Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Software & Services ("Insurance").
+Added: See Note 19 - "Segment and Geographic Information" for more information.
+Added: Descriptions for each segment are provided below:
+Added: • Consulting & Engineering Services – Helps businesses use AI and data analytics to improve operations, automate tasks, and speed up their digital transformation.
+Added: We provide software engineering, consulting, and custom and enterprise applications solutions that help companies manage essential functions, modernize processes, and drive innovation.
+Added: We have strong expertise in industries like finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector.
+Added: Our solutions help businesses stay competitive by improving efficiency, launching new products faster, expanding into new markets, and achieving their strategic goals.
+Added: • Global Infrastructure Services – Implements and operates the technology underpinning the critical systems of global businesses and governments.
+Added: Clients trust us to secure, modernize, and operate their critical systems and improve workplace experience to support business growth.
+Added: Services include the design, migration, and management of complex data center, mainframe, cloud, and network environments, with an emphasis on scalability, security, compliance, and cost efficiency.
+Added: By leveraging a human-led, AI-driven Intelligent Operations approach, we deliver secure, reliable IT operations that clients trust.
+Added: We also provide cross-industry business process services, which streamline clients’ core enterprise functions such as finance, HR, procurement, and customer service.
+Added: The implementation of secure, reliable technology improves employee experiences and productivity by streamlining daily operations—such as device management, helpdesk support, and AI-powered automation—enabling seamless collaboration, reducing IT support demands, and lowering costs through intuitive, self-service tools.
+Added: • Insurance Software & Services – Provides software and services for Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations.
+Added: We help insurers modernize their technology landscape from heritage systems to advanced AI-powered solutions that enhance operational efficiency, improve customer experiences, and enable insurers to adopt a digital-first approach.
+Added: Complementing our software solutions, we provide comprehensive business process services, leveraging deep industry expertise to support the full spectrum of insurance operations.
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Basis of Presentation
14 unchanged sentences
In the opinion of the Company's management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements.
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company determines if an arrangement is or contains a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether DXC obtains substantially all economic benefits from and has the ability to direct the use of the asset.
7 unchanged sentences
The rate is dependent on several factors, including the lease term, currency of the lease payments and the Company's credit ratings.
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company's lease terms may include options to extend or terminate the lease.
13 unchanged sentences
• Recognition of revenue when, or as, the Company satisfies a performance obligation
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DXC's IT outsourcing ("ITO") arrangements typically reflect a single performance obligation that comprises a series of distinct services which are substantially the same and provided over a period of time using the same measure of progress.
7 unchanged sentences
Other than software sales involving multiple performance obligations, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service.
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DXC's ITO arrangements may also contain embedded leases for equipment used to fulfill services.
19 unchanged sentences
Revenue is recognized over time based on unit metrics multiplied by the agreed-upon contract unit price or when services are delivered.
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fixed-price contracts.
13 unchanged sentences
Revenue for post-contract customer support and other software services is recognized over time as those services are provided .
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Practical Expedients
14 unchanged sentences
Capitalized sales commissions costs are classified within other assets and amortized in selling, general and administrative expenses.
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Costs to Fulfill a Contract
10 unchanged sentences
The fair value of assets is determined based on the prevailing market prices or estimated fair value of investments when quoted prices are not available.
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Software Development Costs
13 unchanged sentences
Internal-use software assets are evaluated for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Share-Based Compensation
18 unchanged sentences
expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, the disposal of a significant component of a reporting unit and the testing for recoverability of a significant asset group within a reporting unit.
+Added: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company initially assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
6 unchanged sentences
However, if a reporting unit’s fair value is less than its carrying value, then an impairment charge is recorded in the amount of the excess .
−Removed: DXC TECHNOLOGY COMPANY - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
When the Company performs the quantitative goodwill impairment test for a reporting unit, it estimates the fair value of the reporting unit using a combination of an income approach and a market approach.
101 unchanged sentences
Date Issued and ASU Date Adopted and Method Description Impact
−Removed: November 2023
−Removed: ASU 2023-07, “Improvements to Reportable Segment Disclosures”
−Removed: January 1, 2025 Prospective
−Removed: This update requires disclosure of significant segment expenses used by the Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources, disclose the title and position of the CODM and modifies other segment disclosures and the frequency thereof.
−Removed: The Company adopted this standard by expanding disclosures related to segments in the notes to the financial statements.
+Added: December 2023
+Added: ASU 2023-09, “Improvements to Income Tax Disclosures”
+Added: March 31, 2026 Prospective
+Added: The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.
+Added: The Company adopted this standard by expanding disclosures related to income tax in the notes to the financial statements.
New Accounting Pronouncements
2 unchanged sentences
Description Impact
−Removed: December 2023
−Removed: ASU 2023-09, “Improvements to Income Tax Disclosures” Fiscal 2026 The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.
−Removed: Early adoption of this update is permitted.
−Removed: The Company is in the process of assessing the impacts and method of adoption.
−Removed: This ASU will impact our financial statement disclosures, but not its consolidated financial statements.
November 2024
−Removed: ASU 2024-03, "Disaggregation of Income Statement Expenses"
+Added: ASU 2024-03, "Disaggregation of Income Statement Expenses" Fiscal 2028
The update requires disclosure, in the notes to financial statements, of specified quantitative information about certain costs and expenses presented in the income statement and certain qualitative information about costs that are not disaggregated.
2 unchanged sentences
This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.
+Added: “Targeted Improvements to the Accounting for Internal-Use Software”
+Added: Fiscal 2029 The update amends the guidance for capitalizing internal-use software so that it is neutral to different software development methods, primarily by removing the previous “development stage” model to more closely align the capitalization of internal use software to that of software to be sold or marketed externally.
+Added: Early adoption of this update is permitted.
+Added: The Company is in the process of assessing the impact of the ASU on our consolidated financial statements as well as its method of adoption.
Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC's consolidated financial statements.
4 unchanged sentences
During fiscal 2024, the Company sold insignificant businesses and made adjustments to estimated amounts from prior years’ dispositions that resulted in a gain of $ 79 million.
−Removed: Fiscal 2023 Divestitures
−Removed: During fiscal 2023, DXC completed the sale of its German financial services subsidiary ("FDB" or the "FDB Business") to the FNZ Group ("FNZ") for € 308 million (approximately $ 329 million), resulting in a pre-tax gain of approximately $ 215 million.
−Removed: Included in the FDB sale was AXA Bank Germany, a German retail bank, that DXC acquired for total consideration of $ 101 million on January 1, 2021.
−Removed: During fiscal 2023, the Company sold insignificant businesses that resulted in a net loss of $ 25 million.
−Removed: Included in this amount was the Company's primary Russian entity that the Company sold in the second quarter of fiscal 2023.
−Removed: Note 3 - Earnings (Loss) Per Share
−Removed: Basic EPS are computed using the weighted average number of shares of common stock outstanding during the period.
+Added: Note 3 - Earnings Per Share
+Added: Basic earnings per share ("EPS") are computed using the weighted average number of shares of common stock outstanding during the period.
Diluted EPS reflect the incremental shares issuable upon the assumed exercise of stock options and equity awards.
3 unchanged sentences
March 31, 2026 March 31, 2025 March 31, 2024
−Removed: Net income (loss) attributable to DXC common shareholders:
+Added: Net income attributable to DXC common shareholders:
$ 18 $ 389 $ 91
−Removed: Common share information:
Weighted average common shares outstanding for basic EPS 175.02 180.68 195.80
1 unchanged sentence
Weighted average common shares outstanding for diluted EPS 178.65 184.92 198.78
−Removed: Earnings (loss) per share:
+Added: Earnings per share:
Basic $ 0.10 $ 2.15 $ 0.46
16 unchanged sentences
The following table presents the change in balance for the allowance for doubtful accounts:
−Removed: As of and for Fiscal Years Ended
(in millions) March 31, 2026 March 31, 2025
4 unchanged sentences
Receivables Facility
−Removed: The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified as of March 31, 2025, the "Receivables Facility") with certain unaffiliated financial institutions (the "Purchasers") for the sale of commercial accounts receivable in the United States.
−Removed: The Receivables Facility has a facility limit of $ 400 million as of March 31, 2025.
−Removed: The Receivables Facility's termination date is July 25, 2025.
+Added: The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified, the “Receivables Facility”) with certain unaffiliated financial institutions (the “Purchasers”) for the sale of commercial accounts receivable in the United States up to a maximum amount of $ 400 million.
+Added: The Receivables Facility was amended on July 25, 2025, extending the termination date to July 24, 2026.
As of March 31, 2026, the total availability under the Receivables Facility was $ 367 million and the amount sold to the Purchasers was $ 367 million, which was derecognized from the Company's balance sheet.
−Removed: The fair value of the sold receivables approximated their book value due to their short-term nature, resulting in no gain or loss recorded on the sale of receivables.
+Added: The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.
Note 5 - Leases
The Company has operating and finance leases for data centers, corporate offices, and certain equipment.
−Removed: Our leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one to three years .
+Added: Its leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years .
Operating Leases
22 unchanged sentences
The weighted-average operating lease term was 3.7 years and 3.8 years as of March 31, 2026 and March 31, 2025, respectively.
−Removed: The weighted-average operating lease discount rate was 4.9 % and 4.6 % as of March 31, 2025 and March 31, 2024, respectively.
+Added: The weighted-average operating lease discount rate was 4.9 % as of both March 31, 2026 and March 31, 2025, respectively.
The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2026:
9 unchanged sentences
(in millions) March 31, 2026 March 31, 2025 March 31, 2024
−Removed: Finance lease cost:
Amortization of right-of-use assets $ 48 $ 81 $ 137
45 unchanged sentences
The net notional amounts of the foreign currency forward contracts outstanding as of March 31, 2026 and March 31, 2025 was $ 1.3 billion and $ 1.9 billion, respectively.
−Removed: The following table presents the foreign currency (gain) loss to Other expense (income), net:
+Added: The following table presents the foreign currency gain to Other expense (income), net:
Fiscal Years Ended
24 unchanged sentences
To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties.
−Removed: With respect to its foreign currency derivatives, as of March 31, 2025, there were three counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is immaterial.
+Added: With respect to its foreign currency derivatives, as of March 31, 2026, there were five counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $ 4 million.
The Company also enters into enforceable master netting arrangements with some of its counterparties.
11 unchanged sentences
operations are reclassified to earnings from accumulated other comprehensive loss when such net investments are sold or substantially liquidated.
−Removed: As of March 31, 2025 and March 31, 2024, DXC had $ 702 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S.
+Added: As of March 31, 2026, DXC had $ 642 million of foreign currency-denominated intercompany debt designated as hedges of net investments in non-U.S.
subsidiaries.
−Removed: For the fiscal year ended March 31, 2025, the pre-tax impact of loss on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive income (loss) was immaterial.
+Added: For the fiscal year ended March 31, 2026, the pre-tax gain on foreign currency-denominated intercompany debt designated for hedge accounting recognized in other comprehensive income was $ 6 million.
Note 7 - Property and Equipment
24 unchanged sentences
(1) Transition and transformation contract costs are included within other assets on the balance sheet.
+Added: The balance within other assets was $ 577 million and $ 668 million as of March 31, 2026 and March 31, 2025, respectively.
Estimated future intangible asset amortization as of March 31, 2026 is as follows:
3 unchanged sentences
Note 9 - Goodwill
+Added: During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure that includes three operating and reportable segments:
+Added: 1) CES, 2) GIS, and 3) Insurance.
+Added: These segments align with how management assesses performance of the business and allocates resources.
+Added: See Note 19 - "Segment and Geographic Information" for more information.
+Added: The change to the Company’s operating segments resulted in a change to the Company’s reporting units, which are aligned to the Company’s operating and reportable segments.
+Added: As a result of the realignment, the Company reallocated goodwill to the new reporting units on a relative fair value basis.
+Added: In connection with the goodwill reallocation described above, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below their carrying amount and require goodwill to be tested for impairment.
+Added: As a result, the Company concluded that the goodwill balance reallocated to the GIS segment was fully impaired in the first quarter of fiscal 2026.
The following tables summarize the changes in the carrying amounts of goodwill, by segment, for the fiscal years ended March 31, 2026 and March 31, 2025, respectively:
−Removed: (in millions) GBS GIS Total
+Added: (in millions) GBS
+Added: GIS Insurance
Balance as of March 31, 2025, net
$ 526 $ — $ — $ — $ 526
−Removed: Divestitures ( 3 ) — ( 3 )
+Added: Reallocation of Goodwill ( 526 ) 367 14 145 —
+Added: Impairment losses (1)
+Added: — ( 14 ) — ( 14 )
Foreign currency translation (2)
5 unchanged sentences
$ 378 $ — $ 149 $ 527
−Removed: (in millions) GBS GIS Total
+Added: (in millions) GBS CES
+Added: GIS Insurance
Balance as of March 31, 2024, net
1 unchanged sentence
Divestitures( 3)
+Added: ( 3 ) — — — ( 3 )
Foreign currency translation (2)
+Added: ( 3 ) — — — ( 3 )
Balance as of March 31, 2025, net
4 unchanged sentences
$ 526 $ — $ — $ — $ 526
−Removed: Divestitures are described in Note 2 - "Divestitures." The foreign currency translation amount reflects the impact of currency movements on non-U.S.
+Added: ____________________
+Added: (1) Impairment losses are included within Other expense (income), net on the statements of operations.
+Added: (2) The foreign currency translation amount reflects the impact of currency movements on non-U.S.
dollar-denominated goodwill balances.
+Added: (3) Divestitures are described in Note 2 - "Divestitures."
Goodwill Impairment Analyses
−Removed: For the Company’s annual goodwill impairment assessment performed as of July 1, 2024, the Company chose the option to bypass the initial qualitative assessment stage and proceed directly to the quantitative goodwill impairment test;
−Removed: the impairment analyses performed as of July 1, 2023 and 2022 were performed qualitatively.
−Removed: The analyses for each of these fiscal years did not result in an impairment charge.
+Added: The Company’s annual goodwill impairment analyses, which were performed qualitatively in the second quarters of fiscal years 2026 and 2024 and quantitatively in the second quarter of fiscal year 2025, did not result in an impairment charge.
At the end of each fiscal year, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment.
10 unchanged sentences
1.75 % 2026 $ — $ 702
+Added: $ 700 million Senior notes
+Added: 1.80 % 2027 400 —
Current maturities of finance lease liabilities 0.53 % - 14.59 %
15 unchanged sentences
0.53 % - 14.59 %
+Added: 2027 - 2035 82 155
Borrowings for assets acquired under long-term financing 0.00 % - 7.55 %
5 unchanged sentences
(1) The carrying amounts of the senior notes as of March 31, 2026 and March 31, 2025, include the remaining principal outstanding of $ 3,328 million and $ 3,510 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $ 27 million and $ 11 million, respectively.
+Added: During the third quarter of fiscal 2026, the Company issued € 650 million aggregate principal amount of 4.25 % senior notes due fiscal 2031.
+Added: The net proceeds from the issuance were used to repay in full the Company’s € 650 million senior notes due fiscal 2026.
+Added: In addition, the Company redeemed $ 300 million aggregate principal amount of its $ 700 million senior notes due fiscal 2027.
Fair Value of Debt
−Removed: The estimated fair value of the Company's long-term debt excluding finance lease liabilities was $ 3.3 billion as of both March 31, 2025 and March 31, 2024, respectively, as compared with the carrying value of $ 3.6 billion and $ 3.7 billion as of March 31, 2025 and March 31, 2024, respectively.
−Removed: If measured at fair value, long-term debt excluding finance lease liabilities would be classified as Level 1 or Level 2 within the fair value hierarchy.
+Added: The estimated fair value of the Company's senior notes was $ 3.1 billion and $ 3.3 billion as of March 31, 2026 and March 31, 2025, respectively, as compared with the carrying value of $ 3.3 billion and $ 3.5 billion as of March 31, 2026 and March 31, 2025, respectively.
+Added: Senior notes are classified as Level 2 within the fair value hierarchy.
Future Maturities of Debt
3 unchanged sentences
Total $ 3,378
+Added: The Company's liquidity of $ 4.7 billion as of March 31, 2026, includes $ 1.7 billion of cash and cash equivalents and $ 3.0 billion of available borrowings under our revolving credit facility.
+Added: On October 23, 2025, the Company amended its revolving credit facility, extending the maturity date to November 1, 2030 and reducing the total available borrowings to $ 3.0 billion as a result of rationalizing its bank group.
+Added: The Company believes this revised facility continues to provide ample financial flexibility to support our operating and strategic objectives.
Note 11 - Revenue
9 unchanged sentences
Total Revenues $ 12,644 $ 12,871 $ 13,667
−Removed: The revenue by geography pertains to both of the Company’s reportable segments.
+Added: The revenue by geography pertains to all of the Company’s reportable segments.
Refer to Note 19 - "Segment and Geographic Information" for the Company’s segment disclosures.
12 unchanged sentences
Change in contract liabilities were as follows:
−Removed: (in millions) Twelve Months Ended March 31, 2025
−Removed: Twelve Months Ended March 31, 2024
+Added: Twelve Months Ended
+Added: (in millions) March 31, 2026 March 31, 2025
Balance, beginning of period $ 1,397 $ 1,537
19 unchanged sentences
The Company recorded restructuring costs, net of reversals, of $ 115 million, $ 153 million and $ 111 million for fiscal 2026, 2025 and 2024, respectively.
−Removed: The costs recorded during fiscal 2025 were largely the result of implementing the Fiscal 2025 Plan as described below.
The composition of restructuring liabilities by financial statement line items is as follows:
5 unchanged sentences
Fiscal 2026 Plan
−Removed: During fiscal 2025, management approved global cost savings initiatives designed to better align the Company’s workforce, facilities and data centers (the “Fiscal 2025 Plan”).
+Added: During fiscal 2026, management approved global cost savings initiatives designed to better align the Company’s workforce, facility and data center requirements (the “Fiscal 2026 Plan”).
Restructuring activities, summarized by plan year, were as follows:
39 unchanged sentences
A significant number of employees outside the United States are covered by government sponsored programs at no direct cost to the Company other than related payroll taxes.
−Removed: During fiscal 2023, pension trustees and the Company took actions to reduce the volatility of a defined benefit pension plan in the U.K., including entering into pension risk transfer transactions involving the purchase of annuity contracts for portions of its outstanding defined benefit pension obligations using assets from the pension trust.
−Removed: In connection with this transaction, the pension trustees transferred $ 1.0 billion of gross defined benefit pension obligations and related plan assets to an insurance company for approximately 5,000 U.K.
−Removed: plan participants.
−Removed: In addition, the Company recognized a noncash pension settlement charge of $ 361 million, which includes the accelerated recognition of prior service credit that was included in accumulated other comprehensive loss.
−Removed: This transaction is irrevocable, and as a result of the transaction, the pension trustees and the Company were relieved of all responsibility for the related pension obligations and the insurance company is now required to pay and administer the retirement benefits.
−Removed: The change in projected benefit obligation for fiscal year 2025 is primarily related to interest cost, benefits paid, and actuarial gains.
−Removed: Actuarial gains were primarily due to discount rate increases in the U.K.
+Added: In November 2025, the Government of India consolidated multiple labor statutes into a unified framework.
+Added: Certain provisions of this framework revised the definition of wages used in determining employee benefit obligations.
+Added: During the third quarter of fiscal 2026, the Company evaluated the impact of these changes and recognized an increase of approximately $ 15 million in its projected benefit obligations in India.
+Added: In accordance with the Company’s accounting policy to recognize actuarial gains and losses immediately through a mark-to-market adjustment, a non-cash charge of $ 15 million was recorded in Other expense (income), net, during the period.
+Added: The change in projected benefit obligation for fiscal year 2026 is primarily related to interest cost, benefits paid, and foreign currency exchange rate changes.
Projected Benefit Obligations
5 unchanged sentences
Amendments — 13
−Removed: Business/contract acquisitions/divestitures — 4
Settlement/curtailment ( 32 ) ( 23 )
−Removed: Actuarial (gain) loss
+Added: Actuarial gain
+Added: ( 3 ) ( 908 )
Benefits paid ( 337 ) ( 286 )
15 unchanged sentences
Benefits paid ( 337 ) ( 286 )
−Removed: Contractual termination benefits — 1
Plan settlement ( 20 ) ( 21 )
25 unchanged sentences
Subtotal ( 120 ) ( 108 ) ( 92 )
−Removed: Settlement/curtailment (gain) loss
−Removed: Recognition of actuarial (gain) loss
+Added: Settlement/curtailment (gain)
( 10 ) — ( 2 )
−Removed: Net periodic pension (income) expense
+Added: Recognition of actuarial loss (gain)
179 ( 232 ) 447
−Removed: The service cost component of net periodic pension (income) expense is presented in costs of services and selling, general and administrative and the other components of net periodic pension (income) expense are presented in other (income) expense, net in the Company’s statements of operations.
+Added: Net periodic pension expense (income)
+Added: $ 49 $ ( 340 ) $ 353
+Added: The service cost component of net periodic pension expense (income) is presented in costs of services and selling, general and administrative and the other components of net periodic pension expense (income) are presented in other expense (income), net in the Company’s statements of operations.
The weighted-average rates used to determine net periodic pension cost were:
42 unchanged sentences
Fixed income commingled funds 38 323 — 361
−Removed: Fixed income mutual funds — — — —
Corporate and other bonds
15 unchanged sentences
Purchases, sales and settlements 279
+Added: Transfers in and / or out of Level 3 ( 35 )
Changes due to exchange rates 24
35 unchanged sentences
Alternative investment allocations are included in selected plans to achieve greater portfolio diversity intended to reduce the overall volatility risk of the plans.
−Removed: Plan asset risks include longevity, inflation, and other changes in market conditions that could reduce the value of plan assets.
+Added: Plan asset risks include movements in bond and equity markets, inflation, and other changes in market conditions that could reduce the value of plan assets.
Also, a decline in the yield of high quality corporate bonds may adversely affect discount rates resulting in an increase in DXC's pension and other post-retirement obligations.
21 unchanged sentences
Deferred Compensation Plans
−Removed: DXC sponsors two Deferred Compensation Plans, the “DXC Technology Company Deferred Compensation Plan” (the “DXC DCP”), and the Enterprise Services Executive Deferred Compensation Plan (the “ES DCP”).
−Removed: Both plans are non-qualified deferred compensation plans maintained for a select group of management, highly compensated employees and non-employee directors.
−Removed: The DXC DCP covers eligible employees who participated in CSC’s Deferred Compensation Plan prior to the HPES Merger.
−Removed: The ES DCP covers eligible employees who participated in the HPE Executive Deferred Compensation Plan prior to the HPES Merger.
−Removed: Both plans allow participating employees to defer the receipt of current compensation to a future distribution date or event above the amounts that may be deferred under DXC’s tax-qualified 401(k) plan, the DXC
−Removed: Technology Matched Asset Plan.
−Removed: Neither plan provides for employer contributions.
−Removed: As of April 3, 2017, the ES DCP does not admit new participants.
+Added: DXC sponsors a Deferred Compensation Plan, the “DXC Technology Company Deferred Compensation Plan” (the “DXC DCP”).
+Added: The plan is a non-qualified deferred compensation plan maintained for a select group of management, highly compensated employees and non-employee directors.
+Added: The Plan is not subject to the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and benefits under the Plan are not guaranteed by the Pension Benefit Guaranty Corporation under Title IV of ERISA.
+Added: The Plan allows participating employees to defer the receipt of current compensation to a future distribution date or event above the amounts that may be deferred under DXC’s tax-qualified 401(k) plan, the DXC Technology Matched Asset Plan.
+Added: The Plan doesn’t provide for employer contributions.
Certain management and highly compensated employees are eligible to defer all, or a portion of, their regular salary that exceeds the limitation set forth in Internal Revenue Section 401(a)(17) and all or a portion of their incentive compensation.
−Removed: Non-employee directors are eligible to defer up to 100 % of their cash compensation.
+Added: Non-employee directors are eligible to defer up to 100 % of their cash and equity compensation.
The liability under the plan, which is included in other long-term liabilities in the Company's balance sheets, amounted to $ 27 million as of March 31, 2026 and $ 28 million as of March 31, 2025.
19 unchanged sentences
$ 290 $ 234 $ 23
−Removed: The current federal tax expense and (benefit) for fiscal years 2025, 2024, and 2023 includes a $ 0 million, $( 21 ) million and $( 61 ) million transition tax benefit, respectively.
−Removed: The current expense (benefit) for fiscal years 2025, 2024, and 2023, includes interest and penalties of $ 14 million, $ 10 million and $ 1 million, respectively, for uncertain tax positions.
+Added: The current federal tax expense for fiscal years 2026, 2025, and 2024 includes a $ 0 million, $ 0 million and $( 21 ) million transition tax benefit, respectively.
+Added: The current expense for fiscal years 2026, 2025, and 2024, includes interest and penalties of $ 51 million, $ 14 million, and $ 10 million, respectively, for uncertain tax positions.
In connection with the HPES Merger, the Company entered into a tax matters agreement with HPE.
5 unchanged sentences
Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE.
−Removed: remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods.
−Removed: Pursuant to the tax matters agreement, the Company recorded a $ 15 million tax indemnification receivable from Perspecta related to other tax receivables and a $ 4 million tax indemnification payable to Perspecta related to income tax and other tax payables.
+Added: The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods.
+Added: Pursuant to the tax matters agreement, the Company recorded a $ 12 million tax indemnification receivable from Perspecta related to other tax receivables.
In connection with the sale of its healthcare provider software business ("HPS"), the Company entered into a tax matters agreement with Dedalus.
Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of the HPS business.
+Added: Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1, Summary of Significant Accounting Policies, the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended March 31, 2026, was as follows:
+Added: Fiscal Year Ended 2026
+Added: (in millions) Amount Percentage
+Added: U.S federal statutory tax rate $ 67 21.0 %
+Added: State and local income taxes, net of federal income tax effect (1)
+Added: Foreign tax effects
+Added: Change in valuation allowance ( 5 ) ( 1.6 ) %
+Added: Statutory tax rate difference 4 1.3 %
+Added: Other 3 0.9 %
+Added: Belgium 4 1.3 %
+Added: Withholding taxes 8 2.5 %
+Added: Other 4 1.3 %
+Added: Canada province tax 7 2.2 %
+Added: Withholding taxes ( 6 ) ( 1.9 ) %
+Added: Other ( 3 ) ( 0.9 ) %
+Added: Change in valuation allowance 6 1.9 %
+Added: Other 1 0.3 %
+Added: Expired tax incentive 4 1.3 %
+Added: Change in valuation allowance 5 1.6 %
+Added: Change in valuation allowance ( 3 ) ( 0.9 ) %
+Added: Other 7 2.2 %
+Added: Statutory tax rate difference ( 4 ) ( 1.3 ) %
+Added: German trade tax 12 3.8 %
+Added: Other 6 1.9 %
+Added: Statutory tax rate difference 8 2.5 %
+Added: Withholding taxes 28 8.8 %
+Added: Other ( 2 ) ( 0.6 ) %
+Added: Change in valuation allowance ( 5 ) ( 1.6 ) %
+Added: Legal entity liquidation 6 1.9 %
+Added: Other 11 3.5 %
+Added: Japan 5 1.6 %
+Added: Change in valuation allowance 28 8.8 %
+Added: Other ( 4 ) ( 1.3 ) %
+Added: Nontaxable or nondeductible interest 4 1.3 %
+Added: Other 1 0.3 %
+Added: Statutory tax rate difference 4 1.3 %
+Added: Philippines 3 0.9 %
+Added: Singapore 5 1.6 %
+Added: United Kingdom
+Added: Tax audits ( 4 ) ( 1.3 ) %
+Added: Other ( 2 ) ( 0.6 ) %
+Added: Other foreign jurisdictions 18 5.7 %
+Added: Effect of cross-border tax laws
+Added: Subpart F income 21 6.6 %
+Added: Withholding taxes ( 4 ) ( 1.3 ) %
+Added: Gross-up for foreign taxes deemed paid 5 1.6 %
+Added: Base erosion and anti-abuse tax 5 1.6 %
+Added: Other 5 1.6 %
+Added: Foreign tax credits ( 5 ) ( 1.6 ) %
+Added: Research and development tax credits ( 11 ) ( 3.5 ) %
+Added: Change in valuation allowance 1 0.3 %
+Added: Nontaxable or nondeductible Items
+Added: Share-based payment awards 14 4.4 %
+Added: Executive compensation 4 1.3 %
+Added: Indemnification costs ( 7 ) ( 2.2 ) %
+Added: Other ( 3 ) ( 0.9 ) %
+Added: Change in unrecognized tax benefits 50 15.7 %
+Added: Other adjustments
+Added: Worthless stock deduction ( 25 ) ( 7.9 ) %
+Added: Interest on tax receivables ( 4 ) ( 1.3 ) %
+Added: Other 16 4.9 %
+Added: Effective Tax Rate $ 290 91.2 %
+Added: ________________
+Added: (1) State taxes in Virginia contributed to the majority of the tax effect in this category.
The major elements contributing to the difference between the U.S.
−Removed: federal statutory tax rate and the effective tax rate ("ETR") for continuing operations is below.
+Added: federal statutory tax rate and the effective tax rate ("ETR") for continuing operations in accordance with the guidance prior to the adoption of ASU 2023-09 is below.
Fiscal Years Ended
−Removed: March 31, 2025 March 31, 2024 March 31, 2023
+Added: March 31, 2025 March 31, 2024
Statutory rate 21.0 % 21.0 %
7 unchanged sentences
Excess tax benefit or expense for stock compensation
−Removed: 1.1 ( 0.9 ) 0.6
Capitalized transaction costs — 0.9
15 unchanged sentences
• Foreign withholding taxes, which increased income tax expense and increased the ETR by $ 64 million and 58.7 %, respectively.
−Removed: In fiscal 2023, the ETR was primarily impacted by:
−Removed: • A reduction in base erosion and transition taxes, which increased income tax benefit and decreased the ETR by $ 81 million and 9.1 %, respectively.
−Removed: • Income tax and foreign tax credits, which increased income tax benefit and decreased the ETR by $ 71 million and 8.0 %, respectively, offset by tax expense on U.S.
−Removed: international tax inclusions which decreased tax benefit and increased the ETR by $ 51 million and 5.8 %, respectively.
−Removed: • Non-taxable gains and losses on business divestitures, which increased income tax benefit and decreased the ETR by $ 67 million and 7.6 %, respectively.
The deferred tax assets (liabilities) were as follows:
19 unchanged sentences
Income tax related assets are included in the accompanying balance sheets as follows:
−Removed: (in millions) March 31, 2025 March 31, 2024
−Removed: Income tax receivables and prepaid taxes $ 43 $ 44
−Removed: Income taxes receivable and prepaid taxes $ 264 $ 258
−Removed: Deferred tax assets 819 804
+Added: (in millions) Balance Sheet Line Item
+Added: March 31, 2026 March 31, 2025
+Added: Income tax receivables and prepaid taxes Receivables and contract assets, net
+Added: Income taxes receivable and prepaid taxes Other assets
+Added: Deferred tax assets Deferred income taxes, net
$ 1,069 $ 1,083
1 unchanged sentence
Income tax related liabilities are included in the accompanying balance sheet as follows:
−Removed: (in millions) March 31, 2025 March 31, 2024
−Removed: Income taxes payable $ ( 64 ) $ ( 134 )
+Added: (in millions) Balance Sheet Line Item
+Added: March 31, 2026 March 31, 2025
+Added: Income taxes payable Income taxes payable
$ ( 53 ) $ ( 64 )
−Removed: Deferred taxes $ ( 101 ) $ ( 130 )
−Removed: Income taxes payable ( 55 ) ( 32 )
−Removed: Liability for uncertain tax positions ( 339 ) ( 394 )
$ ( 53 ) $ ( 64 )
+Added: Deferred taxes Non-current income tax liabilities and deferred income taxes $ ( 77 ) $ ( 101 )
+Added: Income taxes payable Non-current income tax liabilities and deferred income taxes ( 28 ) ( 55 )
+Added: Liability for uncertain tax positions Non-current income tax liabilities and deferred income taxes ( 397 ) ( 339 )
+Added: $ ( 502 ) $ ( 495 )
Total $ ( 555 ) $ ( 559 )
5 unchanged sentences
The Company considers all available positive and negative evidence including future reversals of existing taxable temporary differences, taxable income in prior carryback years, projected future taxable income, tax planning strategies and recent financial operations.
−Removed: The net decrease in the valuation allowance of $ 22 million in fiscal 2025 was primarily due to statutory corporate income tax rate changes which triggered a remeasurement of deferred tax balances and the associated valuation allowances.
+Added: The net increase in the valuation allowance of $ 196 million in fiscal 2026, is primarily due to an adjustment for currency translation.
The following table provides information on the Company's various tax carryforwards:
10 unchanged sentences
Tax credit carryforwards
−Removed: $ — $ — $ — 0 $ 3 $ — $ 3 2044
+Added: $ 1 $ — $ 1 2036 $ — $ — $ — N/A
$ 8 $ — $ 8 2040 $ 5 $ — $ 5 2040
6 unchanged sentences
As of March 31, 2026, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and had a deferred tax liability of $ 16 million for the estimated taxes associated with the repatriation of these earnings.
−Removed: The Company also had undistributed earnings of approximately $ 1.4 billion and other outside basis differences in foreign subsidiaries that were indefinitely reinvested in foreign operations.
−Removed: No taxes have been provided on the undistributed foreign earnings and outside basis differences that are indefinitely reinvested.
+Added: The Company also had undistributed earnings and other outside basis differences in foreign subsidiaries that were indefinitely reinvested for which no taxes have been provided and the quantification of the deferred tax liability, if any, was not practicable.
If future events, including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective tax rate.
27 unchanged sentences
The Company’s liability for uncertain tax positions at March 31, 2026, March 31, 2025, and March 31, 2024, includes $ 353 million, $ 336 million, and $ 365 million, respectively, related to amounts that, if recognized, would affect the effective tax rate (excluding related interest and penalties).
−Removed: The decrease in tax positions is primarily due to statute of limitation expirations and a change in the uncertain tax position related to capitalized research and experimental expenditures.
+Added: The increase for fiscal 2026 is primarily due to the increase in the foreign currency loss tax case accrual, partially offset by the expiration of statute of limitations and changes in the uncertain tax positions related to research and experimental expenditures.
The Company recognizes interest accrued related to uncertain tax positions and penalties as a component of income tax expense.
During the year ended March 31, 2026, the Company had a net increase in interest expense of $ 51 million ($ 38 million net of tax), no changes in accrued expense for penalties and, as of March 31, 2026, recognized a liability for interest of $ 168 million ($ 127 million net of tax) and penalties of $ 3 million.
−Removed: During the year ended March 31, 2024, the Company had a net increase in interest expense of $ 24 million ($ 18 million net of tax) and a net decrease in accrued expense for penalties of $ 14 million and, as of March 31, 2024, recognized a liability for interest of $ 103 million ($ 79 million net of tax) and penalties of $ 4 million.
+Added: During the year ended March 31, 2025, the Company had a net increase in interest expense of $ 14 million ($ 11 million net of tax), no changes in accrued expense for penalties and, as of March 31, 2025, recognized a liability for interest of $ 117 million ($ 89 million net of tax) and penalties of $ 3 million.
During the year ended March 31, 2024, the Company had a net increase in interest expense of $ 24 million ($ 18 million net of tax) and a net decrease in accrued expense for penalties of $ 14 million and, as of March 31, 2024, recognized a liability for interest of $ 103 million ($ 79 million net of tax) and penalties of $ 4 million.
5 unchanged sentences
2021 and forward
−Removed: United States – Federal 2009 and forward
+Added: United States – Federal 2009 through 2021, and 2023 forward
United States – Various States 2009 and forward
14 unchanged sentences
The total cash tax payment the IRS is seeking is approximately $ 503 million, inclusive of penalties and interest, which continues to accrue.
−Removed: The matter is currently scheduled for trial in August 2025.
+Added: Tax Court held a trial on this matter in two sessions in August and October 2025.
+Added: Post-trial briefing concluded in April 2026.
+Added: A decision from the court is now pending.
The second issue pertains to the Company’s deduction for restructuring expenses in fiscal year 2013 in the amount of $ 139 million, which the IRS has disputed.
The total cash tax payment the IRS is seeking is approximately $ 108 million, inclusive of penalties and interest, which continues to accrue.
−Removed: In January 2025, the Court denied the IRS’s motion for summary judgment.
+Added: In January 2025, the Court denied the IRS’ motion for summary judgment.
A trial date is pending.
2 unchanged sentences
The total cash tax payment the IRS is seeking is approximately $ 125 million, inclusive of penalties and interest, which continues to accrue.
−Removed: This matter is currently pending a summary judgment motion from the IRS.
−Removed: As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the U.S.
−Removed: Tax Court, the above matters are not fully reserved and would result in incremental federal and state tax expense of approximately $ 544 million (including estimated interest and penalties) for the unreserved portion of these items and cash tax payments of approximately $ 623 million if we do not prevail.
+Added: In March 2026, the Court granted the IRS’ motion for summary judgment.
+Added: A final decision on the Company’s tax liability is pending.
+Added: During the current year, the Company increased its accrual to fully reserve the net amount of its expected tax liability in this matter.
+Added: As we believe we will ultimately prevail on the technical merits of the first and second issues above and are continuing to challenge them in the U.S.
+Added: Tax Court, the first and second issues are not fully reserved and would result in incremental federal and state tax expense of approximately $ 523 million (including estimated interest and penalties) for the unreserved portion of these items, if we do not prevail.
+Added: The total cash tax exposure across all three issues above is approximately $ 655 million.
These amounts are net of an expected $ 81 million interest deduction tax benefit.
10 unchanged sentences
Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future.
−Removed: The Company believes the outcomes that are reasonably possible within the next 12 months to result in a reduction in its liability for uncertain tax positions, excluding interest, penalties, and tax carryforwards, would be approximately $ 2 million.
+Added: Income Taxes Paid - Net of Refunds Received
+Added: Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended March 31, 2026, was as follows:
+Added: Fiscal Year Ended
+Added: (in millions) March 31, 2026
+Added: Switzerland 13
+Added: All other foreign 74
+Added: Income taxes paid, net of refunds $ 242
Note 15 - Stockholders' Equity
Description of Capital Stock
−Removed: The Company has authorized share capital consisting of 750,000,000 shares of common stock, par value $ 0.01 per share, and 1,000,000 shares of preferred stock, par value $ 0.01 per share.
+Added: The Company has authorized share capital consisting of 750 million shares of common stock, par value $ 0.01 per share, and 1 million shares of preferred stock, par value $ 0.01 per share.
Each share of common stock is equal in all respects to every other share of common stock of the Company.
11 unchanged sentences
As of March 31, 2026, approximately $ 342 million worth of shares remained available for repurchase under the plans or programs.
−Removed: There were no share repurchases during fiscal 2025.
−Removed: During the third quarter of fiscal 2025, the Company made a $ 12 million payment for the excise tax associated with prior year share repurchases in compliance with the Inflation Reduction Act.
The shares repurchased are retired immediately and included in the category of authorized but unissued shares.
1 unchanged sentence
The details of shares repurchased during fiscal 2026 and 2024 are shown below.
+Added: There were no share repurchases during fiscal 2025.
Fiscal Year Number of shares repurchased Average Price Per Share Amount
13 unchanged sentences
Balance at March 31, 2023 $ ( 985 ) $ ( 7 ) $ 218 $ ( 774 )
−Removed: Current-period other comprehensive (loss) income
−Removed: ( 334 ) ( 6 ) — ( 340 )
−Removed: Amounts reclassified from accumulated other comprehensive (loss) income, net of taxes
+Added: Current-period other comprehensive income
+Added: Amounts reclassified from accumulated other comprehensive income (loss), net of taxes
— 7 ( 11 ) ( 4 )
Balance at March 31, 2024 $ ( 939 ) $ — $ 207 $ ( 732 )
−Removed: Current-period other comprehensive (loss) income 46 — — 46
−Removed: Amounts reclassified from accumulated other comprehensive loss, net of taxes
+Added: Current-period other comprehensive loss
( 9 ) ( 10 ) — ( 19 )
+Added: Amounts reclassified from accumulated other comprehensive income (loss), net of taxes
+Added: — 3 ( 14 ) ( 11 )
Balance at March 31, 2025 $ ( 948 ) $ ( 7 ) $ 193 $ ( 762 )
−Removed: Current-period other comprehensive (loss) income ( 9 ) ( 10 ) — ( 19 )
+Added: Current-period other comprehensive loss
+Added: ( 112 ) ( 34 ) — ( 146 )
Amounts reclassified from accumulated other comprehensive loss, net of taxes — 22 ( 4 ) 18
28 unchanged sentences
Related income tax benefit $ 10 $ 13 $ 16
−Removed: Total intrinsic value of options exercised $ — $ — $ 1
Tax benefits from exercised stock options and awards $ 7 $ 8 $ 14
12 unchanged sentences
Expired ( 32,366 ) $ 30.75
−Removed: Outstanding as of March 31, 2023 992,703 $ 33.89 2.20 $ —
+Added: Outstanding and exercisable as of March 31, 2024 945,059 $ 34.25 1.27 $ —
Granted — $ —
62 unchanged sentences
Prepaid assets acquired under long-term financing
−Removed: $ — $ 46 $ 106
Capital expenditures in accounts payable and accrued expenses (3)
+Added: $ 465 $ 1 $ 67
Capital expenditures through finance lease obligations $ 7 $ 24 $ 105
1 unchanged sentence
Shares repurchased but not settled in cash
−Removed: $ — $ 10 $ 20
(1) Income tax refunds were $ 55 million, $ 50 million, and $ 38 million for fiscal 2026, 2025, and 2024, respectively.
(2) There were $ 596 million, $ 703 million, and $ 880 million in modifications and terminations in fiscal 2026, 2025, and 2024, respectively.
−Removed: (3) On August 16, 2022, the U.S.
−Removed: government enacted the IRA into law.
−Removed: The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022.
−Removed: In our cash flow statement, we reflect the excise tax as a financing activity relating to the repurchase of common stock.
−Removed: Note 18 - Other (Income) Expense, Net
−Removed: Other (income) expense, net comprises non-service cost components of net periodic pension income, pension and OPEB actuarial and settlement (gains) losses, movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, losses (gains) on real estate and facility sales, and other miscellaneous (gains) and losses.
+Added: (3) Accrued expenses includes both short-term and long-term liabilities.
+Added: Note 18 - Other Expense (Income), Net
+Added: Other expense (income), net comprises non-service cost components of net periodic pension income, pension and OPEB actuarial and settlement losses and (gains), movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, losses (gains) on real estate and facility sales, and other miscellaneous losses and (gains).
The following table summarizes components of other (income) expense, net:
4 unchanged sentences
$ ( 172 ) $ ( 160 ) $ ( 145 )
−Removed: Pension and OPEB actuarial and settlement (gains) losses
+Added: Pension and OPEB actuarial and settlement losses (gains)
169 ( 232 ) 445
1 unchanged sentence
( 2 ) ( 4 ) ( 7 )
−Removed: Loss (gain) on real estate and facility sales
−Removed: 23 ( 7 ) ( 21 )
−Removed: Other miscellaneous (gains) and losses
+Added: Losses (gains) on real estate and facility sales
+Added: Other miscellaneous losses (gains)
6 ( 3 ) ( 68 )
4 unchanged sentences
Our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) serve as our Chief Operating Decision Makers ("CODM") and are responsible for obtaining, reviewing, and managing the Company’s financial performance based on these segments.
−Removed: Global Business Services ("GBS") provides innovative technology solutions that help our customers address key business challenges and accelerate transformations tailored to each customer’s industry and specific objectives.
−Removed: Global Infrastructure Services ("GIS") provides a portfolio of technology offerings that deliver predictable outcomes and measurable results while reducing business risk and operational costs for customers.
+Added: During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services.
+Added: The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources:
+Added: CES, GIS, and Insurance, as previously described above in Note 1 - “Summary of Significant Accounting Policies.” In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation.
The Company's CODM uses segment profit to measure operational strength and performance, assist in evaluation of underlying trends, and allocate resources through periodic budget and forecasting processes.
Segment profit is defined as segment revenues less costs of services, selling, general and administrative, depreciation and amortization, and other segment items.
−Removed: The Company allocates certain costs such as real estate costs, information technology costs and costs for certain other shared corporate functions to it segments using a proportional share of either revenue or headcount for each segment.
+Added: The Company allocates certain costs such as real estate costs, information technology costs and costs for certain other shared corporate functions to its segments using a proportional share of either revenue or headcount for each segment.
The Company does not allocate to its segments certain operating expenses managed at the corporate level.
−Removed: These unallocated expenses generally include certain corporate function costs, stock-based compensation expense, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets, impairment losses, gains/(losses) on dispositions of businesses, gains/(losses) on real estate and facility sales, and other costs that do not reflect ongoing segment operating performance.
+Added: These unallocated expenses generally include certain corporate function costs, pension and other post-retirement benefit (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets, impairment losses, gains/(losses) on dispositions of businesses, gains/(losses) on real estate and facility sales, and other costs that do not reflect ongoing segment operating performance.
+Added: As part of the transition to the new segment structure, the Company updated the assumptions that define which expenses remain in corporate post allocation.
+Added: The tables below reflect those revised assumptions.
Segment Measures
The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:
−Removed: (in millions) GBS GIS Total Reportable Segments
+Added: (in millions) CES
+Added: Total Reportable Segments
Fiscal Year Ended March 31, 2026
28 unchanged sentences
Segment Profit $ 566 $ 429 $ 155 $ 1,150
+Added: ______________
(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets.
4 unchanged sentences
Total profit for reportable segments $ 1,079 $ 1,173 $ 1,150
−Removed: Unallocated expenses
+Added: Corporate expenses
( 109 ) ( 154 ) ( 141 )
Subtotal $ 970 $ 1,019 $ 1,009
−Removed: Interest income 199 214 135
−Removed: Interest expense ( 265 ) ( 298 ) ( 200 )
Restructuring costs ( 115 ) ( 153 ) ( 111 )
2 unchanged sentences
Merger related indemnification 35 ( 2 ) ( 16 )
−Removed: SEC matter — — ( 8 )
Gains on dispositions 1 13 115
(Losses) gains on real estate and facility sales — ( 23 ) 7
−Removed: Arbitration loss — — ( 29 )
Impairment losses ( 17 ) ( 17 ) ( 5 )
−Removed: Pension and OPEB actuarial and settlement gains (losses)
+Added: Pension and OPEB actuarial and settlement (losses) gains
( 169 ) 232 ( 445 )
−Removed: Income (loss) before income taxes
+Added: Interest income 181 199 214
+Added: Interest expense ( 216 ) ( 265 ) ( 298 )
+Added: Income before income taxes
$ 318 $ 630 $ 109
12 unchanged sentences
No single customer exceeded 10% of the Company’s revenues during fiscal 2026, fiscal 2025 or fiscal 2024.
+Added: Note 20 - Other Liabilities
+Added: The following table provides the components of other liabilities:
+Added: (in millions)
+Added: March 31, 2026 March 31, 2025
+Added: Accrued Expenses and Other Current Liabilities
+Added: Derivative liabilities
+Added: Indirect tax expenses
+Added: Employee-related obligations
+Added: Operating expenses and other current liabilities (1)
+Added: $ 1,261 $ 1,358
+Added: Other Long-term Liabilities
+Added: Indemnification obligations
+Added: Employee-related obligations
+Added: Operating expenses and other long-term liabilities (1)
+Added: (1) Includes multi-year third-party software license agreements and accrued services for professional service providers and other vendors primarily related to program-level activities.
Note 21 - Commitments and Contingencies
5 unchanged sentences
(in millions)
+Added: Thereafter 163
Total $ 2,380
+Added: (1) Subsequent to March 31, 2026, the Company entered into minimum purchase commitments totaling over $ 130 million for additional purchased goods and services.
+Added: These minimum purchase commitments are not reflected in the table above.
In the normal course of business, the Company may provide certain customers with financial performance guarantees, and at times performance letters of credit or surety bonds.
30 unchanged sentences
In July 2024, notice was provided to potential class members.
−Removed: The case is otherwise in discovery.
−Removed: On August 2, 2024, a purported class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against the Company and certain of its current and former officers.
−Removed: The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false and/or misleading statements regarding the Company’s transformation journey.
−Removed: The putative class of plaintiffs includes investors who acquired DXC stock during the period of May 26, 2021 to May 16, 2024.
−Removed: In March 2025, the Court entered an order granting the Company’s motion to dismiss the lawsuit and closing the case.
−Removed: In April 2025, the deadline to file an appeal passed and no appeal was filed.
−Removed: The matter is now closed.
−Removed: After the filing of the August 2024 securities class action, five shareholder derivative suits were filed against the Company’s Board of Directors and certain of its current and former officers, alleging a breach of fiduciary duties arising from the claims asserted in the August 2024 securities class action.
−Removed: Three derivative suits were filed in the United States District Court for the Eastern District of Virginia, and two derivative suits were filed in the District Court of the State of Nevada, Clark County.
−Removed: All of the derivative suits had been temporarily stayed, pending an outcome in the August 2024 securities class action.
−Removed: With the securities class action now dismissed and the matter closed, three of the five derivative suits have been voluntarily dismissed, including the two derivative suits pending in District Court of the State of Nevada, Clark County, and one of the derivative suits pending in the United States District Court for the Eastern District of Virginia.
−Removed: The Company is pursuing dismissal of the two remaining derivative suits.
−Removed: The Company believes that the lawsuits described above are without merit, and intends to vigorously defend all claims asserted.
+Added: In June 2025, the Company reached an agreement in principle to resolve all claims in the action.
+Added: In October 2025, the parties executed a Stipulation of Settlement and submitted it to the Court for approval.
+Added: In December 2025, the Court entered an order granting preliminary approval of the settlement.
+Added: Notice of the pending settlement has been sent to class members.
+Added: A final approval hearing has been scheduled for June 2026.
+Added: The Company’s share of the settlement has been funded by its insurance carriers.
Tax Examinations:
12 unchanged sentences
In April 2025, the Court of Appeals heard oral argument on the appeal.
−Removed: A decision from the Court of Appeals is pending.
+Added: In November 2025, the Court of Appeals issued an order affirming the monetary award to the Company.
+Added: The Court vacated the injunction and remanded to the District Court for the issuance of a revised injunction with a narrower scope.
+Added: Proceedings in the District Court regarding an amended injunction are ongoing.
+Added: In December 2025, TCS filed petitions with the Court of Appeals seeking panel rehearing and rehearing en banc.
+Added: The Court denied both petitions.
+Added: In March 2026, TCS filed a petition for writ of certiorari with the U.S.
+Added: Supreme Court.
+Added: The Company's response to the petition is due in May 2026.
The Company has not recognized any portion of the award in its financial statements and will continue to monitor the progress of the case.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.